AFRM vs. CTSH: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AFRM and CTSH, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | AFRM | CTSH |
|---|---|---|
| Company Name | Affirm Holdings, Inc. | Cognizant Technology Solutions Corporation |
| Country | United States | United States |
| GICS Sector | Financials | Information Technology |
| GICS Industry | Financial Services | IT Services |
| Market Capitalization | 24.37 billion USD | 33.04 billion USD |
| Exchange | NasdaqGS | NasdaqGS |
| Listing Date | January 13, 2021 | June 19, 1998 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of AFRM and CTSH by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.
Historical Performance at a Glance
| Symbol | AFRM | CTSH |
|---|---|---|
| 5-Day Price Return | -2.26% | 0.86% |
| 13-Week Price Return | 8.15% | -16.45% |
| 26-Week Price Return | 65.59% | -11.56% |
| 52-Week Price Return | 91.63% | -11.86% |
| Month-to-Date Return | 2.39% | 0.88% |
| Year-to-Date Return | 22.87% | -12.02% |
| 10-Day Avg. Volume | 7.39M | 4.11M |
| 3-Month Avg. Volume | 6.86M | 3.95M |
| 3-Month Volatility | 62.14% | 22.15% |
| Beta | 3.64 | 0.98 |
Profitability
Return on Equity (TTM)
AFRM
1.80%
Financial Services Industry
- Max
- 39.28%
- Q3
- 18.88%
- Median
- 9.97%
- Q1
- 4.03%
- Min
- -10.25%
AFRM’s Return on Equity of 1.80% is in the lower quartile for the Financial Services industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.
CTSH
16.50%
IT Services Industry
- Max
- 32.78%
- Q3
- 19.28%
- Median
- 13.86%
- Q1
- 5.50%
- Min
- -10.00%
CTSH’s Return on Equity of 16.50% is on par with the norm for the IT Services industry, indicating its profitability relative to shareholder equity is typical for the sector.
Net Profit Margin (TTM)
AFRM
1.62%
Financial Services Industry
- Max
- 52.16%
- Q3
- 25.35%
- Median
- 12.68%
- Q1
- 6.11%
- Min
- -11.69%
Falling into the lower quartile for the Financial Services industry, AFRM’s Net Profit Margin of 1.62% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.
CTSH
11.89%
IT Services Industry
- Max
- 19.71%
- Q3
- 11.01%
- Median
- 6.66%
- Q1
- 2.96%
- Min
- -6.22%
A Net Profit Margin of 11.89% places CTSH in the upper quartile for the IT Services industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin (TTM)
AFRM
-0.29%
Financial Services Industry
- Max
- 75.57%
- Q3
- 37.78%
- Median
- 19.09%
- Q1
- 10.04%
- Min
- -19.42%
AFRM has a negative Operating Profit Margin of -0.29%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.
CTSH
15.42%
IT Services Industry
- Max
- 22.44%
- Q3
- 14.90%
- Median
- 8.82%
- Q1
- 4.91%
- Min
- -9.89%
An Operating Profit Margin of 15.42% places CTSH in the upper quartile for the IT Services industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | AFRM | CTSH |
|---|---|---|
| Return on Equity (TTM) | 1.80% | 16.50% |
| Return on Assets (TTM) | 0.49% | 12.14% |
| Net Profit Margin (TTM) | 1.62% | 11.89% |
| Operating Profit Margin (TTM) | -0.29% | 15.42% |
| Gross Profit Margin (TTM) | 92.49% | 34.18% |
Financial Strength
Current Ratio (MRQ)
AFRM
4.20
Financial Services Industry
- Max
- 4.83
- Q3
- 2.70
- Median
- 1.44
- Q1
- 0.86
- Min
- 0.01
For the Financial Services industry, the Current Ratio is often not the most suitable measure of short-term liquidity.
CTSH
2.41
IT Services Industry
- Max
- 3.17
- Q3
- 2.00
- Median
- 1.47
- Q1
- 1.05
- Min
- 0.52
CTSH’s Current Ratio of 2.41 is in the upper quartile for the IT Services industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
Debt-to-Equity Ratio (MRQ)
AFRM
2.48
Financial Services Industry
- Max
- 5.07
- Q3
- 2.14
- Median
- 0.66
- Q1
- 0.12
- Min
- 0.00
The Debt-to-Equity Ratio is often not the primary focus for assessing leverage in the Financial Services industry.
CTSH
0.04
IT Services Industry
- Max
- 3.11
- Q3
- 1.55
- Median
- 0.55
- Q1
- 0.17
- Min
- 0.00
Falling into the lower quartile for the IT Services industry, CTSH’s Debt-to-Equity Ratio of 0.04 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
Interest Coverage Ratio (TTM)
AFRM
-3.76
Financial Services Industry
- Max
- 136.23
- Q3
- 56.08
- Median
- 6.55
- Q1
- 2.01
- Min
- -33.27
The Interest Coverage Ratio is often not a primary indicator of debt servicing capacity in the Financial Services industry.
CTSH
100.81
IT Services Industry
- Max
- 129.00
- Q3
- 56.00
- Median
- 11.69
- Q1
- 0.77
- Min
- -28.15
CTSH’s Interest Coverage Ratio of 100.81 is in the upper quartile for the IT Services industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | AFRM | CTSH |
|---|---|---|
| Current Ratio (MRQ) | 4.20 | 2.41 |
| Quick Ratio (MRQ) | 4.20 | 2.41 |
| Debt-to-Equity Ratio (MRQ) | 2.48 | 0.04 |
| Interest Coverage Ratio (TTM) | -3.76 | 100.81 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
AFRM
0.00%
Financial Services Industry
- Max
- 8.12%
- Q3
- 3.37%
- Median
- 1.70%
- Q1
- 0.00%
- Min
- 0.00%
AFRM currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
CTSH
1.84%
IT Services Industry
- Max
- 2.79%
- Q3
- 1.76%
- Median
- 0.58%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 1.84%, CTSH offers a more attractive income stream than most of its peers in the IT Services industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio (TTM)
AFRM
0.00%
Financial Services Industry
- Max
- 132.10%
- Q3
- 64.32%
- Median
- 18.23%
- Q1
- 0.00%
- Min
- 0.00%
AFRM has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
CTSH
24.92%
IT Services Industry
- Max
- 107.85%
- Q3
- 52.62%
- Median
- 22.53%
- Q1
- 0.00%
- Min
- 0.00%
CTSH’s Dividend Payout Ratio of 24.92% is within the typical range for the IT Services industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | AFRM | CTSH |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 1.84% |
| Dividend Payout Ratio (TTM) | 0.00% | 24.92% |
Valuation
Price-to-Earnings Ratio (TTM)
AFRM
466.96
Financial Services Industry
- Max
- 45.81
- Q3
- 30.21
- Median
- 16.29
- Q1
- 10.14
- Min
- 0.70
At 466.96, AFRM’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Financial Services industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
CTSH
13.53
IT Services Industry
- Max
- 56.41
- Q3
- 33.17
- Median
- 23.17
- Q1
- 16.18
- Min
- 6.62
In the lower quartile for the IT Services industry, CTSH’s P/E Ratio of 13.53 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Price-to-Sales Ratio (TTM)
AFRM
7.56
Financial Services Industry
- Max
- 10.88
- Q3
- 5.34
- Median
- 2.64
- Q1
- 1.24
- Min
- 0.06
The P/S Ratio is often not a primary valuation tool in the Financial Services industry.
CTSH
1.61
IT Services Industry
- Max
- 5.99
- Q3
- 4.26
- Median
- 1.93
- Q1
- 0.97
- Min
- 0.12
CTSH’s P/S Ratio of 1.61 aligns with the market consensus for the IT Services industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio (MRQ)
AFRM
7.27
Financial Services Industry
- Max
- 7.93
- Q3
- 3.78
- Median
- 1.49
- Q1
- 0.88
- Min
- 0.08
AFRM’s P/B Ratio of 7.27 is in the upper tier for the Financial Services industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
CTSH
2.52
IT Services Industry
- Max
- 12.34
- Q3
- 7.54
- Median
- 3.84
- Q1
- 2.52
- Min
- 0.88
CTSH’s P/B Ratio of 2.52 is within the conventional range for the IT Services industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
Valuation at a Glance
| Symbol | AFRM | CTSH |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 466.96 | 13.53 |
| Price-to-Sales Ratio (TTM) | 7.56 | 1.61 |
| Price-to-Book Ratio (MRQ) | 7.27 | 2.52 |
| Price-to-Free Cash Flow Ratio (TTM) | 40.50 | 14.44 |